China said Friday that it "attaches great importance to the development of China-Venezuela relations" after a US subsidiary of the Chinese state-owned oil giant Sinopec sued its Venezuelan counterpart.

The lawsuit, filed in a US court, accuses the Venezuelan state-owned oil and natural gas company PDVSA of failing to fulfill a payment of more than $43 million for steel reinforcement bars.

This incomplete payment, Sinopec US alleges, has caused the company to suffer "tens of millions of dollars in damages."

The filing further claims that Bariven, the PDVSA subsidiary to which Sinopec sold the steel rebar, was used as a "sham" to deliberately deprive Sinopec of means to procure its due payment.

The legal action is a "common commercial dispute," Chinese foreign ministry spokesman Geng Shuang said during a regular press briefing, adding that "there's no need to make overinterpretations of this."

"I want to stress that China attaches great importance to the development of China-Venezuela relations. We are willing to follow the principle of equality and mutually beneficial cooperation with Venezuela in all areas," Geng said.

Sinopec spokesman Lu Dapeng told AFP that the Chinese oil firm "took legal means to protect the rights and interests of our company. ...There's no other deeper interpretations".

PDVSA has not publicly commented on the matter.

China, Venezuela's biggest creditor, expressed confidence last month that Caracas can "properly handle" its debt crisis after two ratings agencies declared the South American country in partial default.

Venezuela is buried under an estimated $150 billion mountain of foreign debt, with experts saying it owes around $20-$30 billion to China.

Geng said following the default ratings that Chinese-Venezuelan "cooperation in various fields are all proceeding normally."

PDVSA defaulted on its own debt in mid-November, a low for a company that was once among the world's top five oil firms and a pillar of the Venezuelan economy.

Sinopec, the listed unit of state-owned China Petrochemical Corp, is the world's biggest oil refiner. In the last quarter, it recorded a 12.77 percent climb in net profit year-on-year.

yan/lth/amu

SINOPEC - CHINA PETROLEUM & CHEMICAL CORPORATION

Tweet

Next foreign influence target of U.S. LNG is Venezuela
Washington (UPI) Dec 6, 2017
Liquefied natural gas is a way to extend influence over the horizon to Europe, though similar gains are possible for Latin America, a U.S. senator said. Polish Oil and Gas Co., known commonly as PGNiG, signed a five-year contract in November to secure LNG from the Sabine Pass terminal in Louisiana, the first mid-term contract of its kind. U.S. Sen. Bill Cassidy, R-La., a member o ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only